Venezuelan Oil Affiliates Face Contract Claim

     HOUSTON (CN) – Food commodities trader Alox International demands $5.1 million from Venezuelan oil company affiliates, claiming they breached two contracts to buy wheat flour and margarine. Alox says it was set to fill the defendants’ purchase orders, when they “unilaterally sought to alter the terms of the agreements, withheld payment for certain shipments (and) anticipatorily repudiated the agreements.”




     In a lawsuit in Federal Court, Alox claims Bariven S.A., an affiliate of Venezuela’s state-owned oil company, and PDVSA Services Inc. (PSI), which is owned by Bariven and buys food commodities outside Venezuela, knowingly breached two separate purchase agreements.
     The plaintiff claims PSI imposed a strict labeling condition at the last minute and objected to the wheat’s Argentinean origin.
     After several attempts to negotiate, Alox delivered 1,000 tons of Argentinean flour to the defendants, which they accepted without objection or payment. Alox then sent notification of cancellation to PSI for non-payment, which allegedly prompted PSI to falsely accuse Alox of breaching their agreement.
     Alox claims a similar scenario unfolded with the margarine order.
     Alox seeks $5.1 million in damages for lost profits, lost security deposits and injury to its business reputation.
     It is represented by Jose Berlanga with Gardere Wynne Sewell LLP.

%d bloggers like this: